APPLE POSTS RECORD

REVENUE IN 1ST QUARTER,

BUT IPHONE SALES DISAPPOINT
DAILY LIFE TRANSFORMED BY TECHNOLOGICAL
INNOVATIONS OF 1980s
GOOGLE SELLING MOTOROLA PHONE BUSINESS TO LENOVO 30
US, INTERNET COMPANIES REACH DEAL ON DISCLOSURE 72
STEVE WOZNIAK ANNOUNCED AS OPENING KEYNOTE SPEAKER AT APPS WORLD
IN SAN FRANCISCO 82
WORLDWIDE SMARTPHONE SHIPMENTS TOP ONE BILLION UNITS FOR THE FIRST TIME,
ACCORDING TO IDC 102
PRESSURE MOUNTS FOR APPLE TO EXPAND ITS HORIZONS 114
HOTEL CHAIN TESTING PROGRAM OF USING SMARTPHONES AS ROOM KEYS 124
TOP 10 APPS 52
iTUNES REVIEW 56
TOP 10 SONGS 96
TOP 10 ALBUMS 100
TOP 10 MUSIC VIDEOS 101
10
86
14
THE MAC AT 30... AND WHAT MADE IT MATTER
CELEBRATIONS ABOUND AS WORLD REFLECTS ON
THE BREAKTHROUGH COMPUTER
32
APP WATCH: WILL
YOU BE MY BETWEEN?
APP FOR LOVERS
If ever in doubt about your guys
commlLmenL Lo a relauonshlp, ask hlm lf he
would commlL Lo an app.
A growlng number of young couples ln Asla
are sharlng speclal momenLs ln Lhe prlvacy
of 8eLween, a ughL neLworklng app LhaL llnks
only Lwo people.
ln an age of soclal medla overload where
LweeLs, lnsLagram and lacebook posungs
can lnvlLe unwanLed auenuon from parenLs
and employers, 8eLween feels llke a dlglLal
safe haven LhaL blocks ouLslde nolse and
keeps memorles [usL for Lwo.
CreaLed by Seoul-based sLarLup value
CreaLors & Company, 8eLween hlL 3 mllllon
downloads ln Lwo years. AbouL Lwo Lhlrds
of Lhe users are ln SouLh korea wlLh Lhelr
average age ln Lhe mld-20s. 8eLween has
auracLed more Lhan half a mllllon users
ln !apan and ls expandlng ln 1halland and
Slngapore. Pundreds of Lhousands of
Chlnese and Amerlcan couples have also
[olned.
value CreaLors CLC ark !aeuk sald soclal
medla faugue ls Lhe maln drlver behlnd
8eLween. As more people [oln lacebook,
1wluer, and chaL-based servlces such as
Llne and kakao 1alk, 8eLween sees a blgger
chance Lo grow lLs user numbers.
PCW l1 WC8kS
?ou lnsLall 8eLween on your Apple or
Androld devlce and provlde Lhe moblle
number of Lhe person you wanL Lo use Lhe
app wlLh. MosL use Lhe app, whlch ls free,
wlLh someone Lhey are romanucally lnvolved
wlLh, Lhough LhaL's noL requlred. Cnce
Lhe requesL ls accepLed, Lhe Lwo can use
APP WATCH: WILL YOU BE MY BETWEEN?
APP FOR LOVERS
10
11
lnsLanL messaglng, keep [ournals, exchange
volce messages, posL plcLures and leave
commenLs. 8eLween also oers a blog-llke
space where Lhe Lwo users can creaLe phoLo
albums and long noLes. lcLures can be
Lagged Lo a Memory 8ox," whlch arranges
Lhem ln a sLream of ules. 8emlnders for
annlversarles, blrLhdays or any speclal days
such as Lhe day Lhe couple rsL meL can
be seL ln Lhe app's calendar. 1he conLenL
creaLed ls prlvaLe Lo Lhe Lwo users and Lhe
app can be password proLecLed.
ulCl1AL CCuLL 8lnC
CLC ark sald Lhe company envlsloned
a closed soclal neLwork akln Lo a dlglLal
couple rlng." Whlle any Lwo people can use
8eLween regardless of Lhelr relauonshlp
sLaLus, ark sald many users see Lhe app as
a slgn of commlLmenL and loyalLy, slmllar Lo
rlngs LhaL SouLh korean couples wear even
before promlslng marrlage. Agreelng Lo use
Lhe app or asklng someone Lo [oln Lhe app
shows aecuon. A shy korean may prefer
saylng uo you wanL Lo do 8eLween wlLh
me?" Lo ask someone ouL, he sald.
Whlle some moblle apps have glven rlse
Lo exchanglng naked plcLures or hooklng
up wlLh a sLranger nearby, 8eLween's
deslgn encourages an excluslve and lasung
relauonshlp. 1he one-accounL-per-emall rule
supporLs Lhe ldea of monogamy, alLhough
ark laughed saylng Lhe company wouldn'L
deLer a person managlng muluple accounLs.
Pam ?oon-seok, a 29-year-old nance
professlonal ln Seoul, sald he wrlLes poems
and leuers of apology on 8eLween aer a
quarrel wlLh hls glrlfrlend.
8eLween wlll never add a locauon-Lracklng
feaLure, ark sald, because Lhe app maker
belleves LhaL LrusL ls key ln a relauonshlp.
uA1lnC CuL1u8L
SouLh korean couples oen expecL each
oLher Lo follow romanuc cusLoms, a
source of blg buslness here. ln addluon Lo
valenune's uay when women glve chocolaLe
Lo men, Lhere ls WhlLe uay on March 14
when men glve sweeLs Lo women. lL ls easy
Lo guess whaL Lo glve on 8ose uay and
whaL Lo do on klss uay. Some buslnesses
excluslvely serve couples by selllng ldenucal
looklng 1-shlrLs and oLher apparel LhaL can
be palred. Some oer speclal dlscounLs for
couples. 1he llsL goes on.
korean couples celebraLe noL only a one-
year annlversary, buL also 100 days slnce
meeung. 8eLween keeps a counL, servlng as
a remlnder for people llke Pam, who marks
such occaslons by wrlung a poem, glvlng a
gl or dlnlng aL a fancy resLauranL. Pam and
hls glrlfrlend have been LogeLher for more
Lhan 1,000 days.
PAnuS Cn
Slnce l sLarLed uslng 8eLween wlLh my
boyfrlend, lL has become Lhe prlmary way
we chaL, save phoLos, plan vacauons and
keep Lo-do llsLs. We have sLopped Lalklng
on kakao 1alk or lMessage. Whlle l ceased
Lo posL plcLures on lacebook, dozens of
plcLures accumulaLed on 8eLween. 8eLween
feels llke keeplng a blog beLween Lhe Lwo
of us wlLh an lnsLanL messaglng feaLure
as an added beneL. l can Lell when my
boyfriend sends an instant message because
8eLween alerLs wlLh a unlque beep sound.
Lven for couples llke us who snl aL anyLhlng
excesslvely lovey-dovey such as wearlng a
couple rlng, 8eLween's slmple deslgn and
feaLures have a greaL appeal.
12
13

1ony klnneberg's enure sclence class

gaLhered around Lhe compuLer's glowlng
green screen. A [unlor ln hlgh school,
klnneberg had never seen or worked wlLh
a compuLer before golng Lo class LhaL day
ln 1983 aL 8lchland no. 44, a small school
dlsLrlcL souLh of largo, n.u.
1hough lL has been more Lhan 20 years slnce
LhaL day, hls recollecuons of seelng hls rsL
compuLer, a 1andy, are clear. AL LhaL ume, lL
was Lhe only compuLer aL Lhe school.
16
?ou'd spend Lhe whole hour worklng on
a program and spend so much ume savlng
Lhlngs," sald klnneberg, now Lhe Lechnology
coordlnaLor aL Lhe arksLon School ulsLrlcL.
lL was so Ledlous and lL Look forever Lo run a
program, buL LhaL was Lhe only Lhlng we had,
so we dldn'L know any dlerenL."
lrom hls chlldhood Lhrough hls adulL worklng
llfe, klnneberg has seen rsLhand how Lhe
Lechnology exploslon rooLed ln Lhe 1980s
has molded Lhe world we lnhablL Loday. !usL
prlor Lo klnneberg's rsL lnLeracuon wlLh a
compuLer, 1lme Magazlne ln 1982 chose lLs
rsL non-human for lLs annual erson of Lhe
?ear. lL was Lhe compuLer.
1haL rsL year compuLers enLered
klnneberg's llfe, lL Look an enure class
perlod's ume Lo program a baslc Lask such
as rolllng dlce Lo play ?ahLzee, or chooslng
random numbers. 1o do LhaL, Lhe Leacher
and sLudenLs wroLe code LhaL was puL on
casseue Lape.
17
1he class would gaLher around Lhe Leacher
and waLch hlm work wlLh lL because he was
so blg lnLo Lhe compuLer and Lechnology,"
klnneberg sald of hls Lhen-Leacher. 8y no
means was lL as exclung as lL ls Loday."
ln 1977, 8adlo Shack lnLroduced lLs rsL model
of Lhe 18S, or 1andy 8adlo Shack compuLer.
1hroughouL Lhe '80s, Lhe 18S lmproved. 1he
rsL Apple MaclnLosh was rolled ouL ln 1984,
and Lhe Wlndows operaung sysLem from
Mlcroso came ouL ln 1983.
8ob vanLaecken, acuvlues dlrecLor aL
arksLon, who moved Lo Lown ln 1973, sald
he belleves compuLers were lnLroduced Lo Lhe
arksLon School ulsLrlcL ln Lhe early Lo mld-
80s. Pe sald a llne of Commodores, llkely Lhe
C64, was Lhe rsL aL Lhe school.
Lven Loday, more C64s have been sold Lhan
any oLher slngle compuLer sysLem aL abouL 17
mllllon sysLems. 1he Commodore, lncludlng
models C64 and L1, was wldely used ln
classrooms and klnneberg sald he remembers
seelng hls rsL Commodore ln 1983.
klnneberg sLarLed wlLh arksLon ln 2000. 1he
school added hls posluon because of Lhe rlse
of Lechnology ln educauon. 8esldes Leachlng
a medla class and leadlng Lhe medla club, he
ls ln charge of Lhe dlsLrlcL's compuLer securlLy,
lLerlng conLenL for educauonal purposes,
and repalr work.
klnneberg sald each sLudenL ln arksLon from
sevenLh Lo 12Lh grade elLher has a lapLop or
an lad, and Lhe elemenLary has abouL 60 Lo
90 lads avallable for Leachlng lessons.
lL's a scary LhoughL how much we rely on
Lechnology and compuLers now," klnneberg
sald. 8ack Lhen, lL was exclung Lo see a
compuLer, buL whaL you could do wlLh lL was
very llmlLed."
1here are so many Lhlngs LhaL are elecLronlc
LhaL lf Lhe power wenL ouL, you're preuy
18

much aL a sLandsull. lf all LhaL sLu goes down,

you're [usL losL."
EDUCATION TRANSFORMED
1haL's a far cry from Lhe educauonal sysLem of
Lhe early 1980s, when chalk was sull a prlmary
Leachlng medlum. 8urnell Clanzer and 8ob
krleLlow, boLh superlnLendenLs of area school
dlsLrlcLs, sald compuLers and Lechnology have
slgnlcanLly changed educauon durlng Lhelr
careers.
Clanzer sLarLed Leachlng ln Armour ln 1973
aer graduaung from Lhe unlverslLy of SouLh
uakoLa ln vermllllon. Clanzer, who ls known
as a successful hlgh school baskeLball coach,
was also a maLh Leacher ln Armour, where
he recalls drawlng ple graphs on chalkboards
durlng Leachlng lessons ln Lhe '80s. AL Lhe
ume, calculaLors LhaL had a square-rooL
buuon were hard Lo nd and cosL abouL $30,
he sald.
School has denlLely changed, LhaL's for
sure," sald Clanzer, who LaughL for 33 years
before becomlng an admlnlsLraLor aL Lhe
school. 1here are laySLauons and xboxs and
oLher compuLer games. klds are used Lo Lhose
ashy Lhlngs and alds for Leachlng. lf you wenL
back Lo a chalkboard wlLh Leachlng, you'd be
ouL of daLe. ?ou couldn'L capLure Lhelr lnLeresL
anymore."
When Clanzer was ln school, hls rsL Lyplng
classes were on a LypewrlLer and were
lnLroduced when he was a sophomore. 1hese
days, formal keyboardlng classes begln for
Lhlrd-graders ln Armour.
Can you lmaglne Lrylng Lo Lype wlLh Lhe
hunL-and-peck sysLem?" he sald. ?ou'd be ln
Lrouble."
krleLlow also sLarLed hls Leachlng career ln
1973 and worked ln Lhe classroom Lhrough
21

Lhe '80s unul becomlng a school admlnlsLraLor

ln 1990.
So much has changed," he sald. lL's
someLhlng where Lhe younger generauons
are accusLomed and used Lo, and for us older
people lL's a Lransluon. Some Leachers have
readlly embraced lL and oLhers haven'L."
THE BRICK PHONE COMES TO SD
8esldes Lhe Lransformauon wroughL by
compuLers aL school, home and work, anoLher
1980s phenomenon LhaL deeply lmpacLs
modern people every day ls Lhe lnvenuon and
spread of cell phones.
Cn SepL. 21, 1983, MoLorola made hlsLory
when Lhe lederal Communlcauons
Commlsslon approved Lhe 8000x, Lhe world's
rsL commerclal, porLable cell phone. lL cosL
$3,993, was 10 lnches Lall and welghed 2.3
pounds.
8y 1983, abouL 340,000 people ln Lhe unlLed
SLaLes owned a cell phone. 8y 1990, 3.2
mllllon owned one.
Cell phones were a brand-new concepL and
dlmculL Lo sell," sald 8od 8oyd, 70, of Puron,
who clalms Lo be Lhe rsL person Lo have
sold cell phones ln MlLchell, Puron and much
of Lhe easLern parL of SouLh uakoLa. l'm
posluve l can say LhaL. lL was a fun rlde."
Whlle cell phone sales sLarLed Lhelr ma[or
rlse ln Lhe laLe 1980s, 8oyd sald lL wasn'L unul
1990 when SouLh uakoLa sLarLed seelng a
Lrend of more people wlLh Lhem. 8oyd sald
he lnLervlewed wlLh CommneL Cellular ln
March of 1990 and wenL Lo uenver from May
Lo !uly for Lralnlng Lo learn how Lo sell moblle
phones. 8y AugusL, he was back ln Lhe sLaLe
maklng sales plLches.
1he only place you could purchase moblle
phones ln Lhe sLaLe prlor Lo when l began
23
was ln Sloux lalls, and lL was a really llmlLed
markeL," he sald. Cur whole Lheory for
worklng for CommneL Cellular was Lo geL
servlce ouL Lo rural Amerlca."
8oyd sald he sold Lwo dlerenL Lypes of
phones, one LhaL was carrled ln a bag and one
he descrlbed as a brlck. 1he bag phone was
usually kepL lnslde vehlcles and cosL beLween
$499 and $699. Pe descrlbed Lhe slze of Lhe
brlck phone llke a carLon of clgareues aL abouL
26

2 lnches wlde, 12 lnches Lall and 2-3 lnches

deep. lL cosL $399.
Much of hls selllng was done whlle Lravellng,
8oyd sald, buL he also puL up booLhs aL Lhe
sLaLe falr and aL Lhe Corn alace. 8oyd sLayed
ln Lhe moblle phone buslness unul 2004,
when he sold hls Puron shop, now called
Cellular Connecuon.
1oday, Lhere are more Lhan 300 mllllon cell
phone users ln Lhe unlLed SLaLes.
My graclous, whaL lL has Lransformed lnLo
ls wonderful," he sald. When we sLarLed
selllng moblle phones, we Lransmlued calls
and Lalked. We dldn'L know of Lexung or daLa
Lransmlsslon or plcLure and vldeos. WhaL's
golng Lo happen ln Lhe nexL 20 years?"
29
Coogle ls selllng MoLorola MoblllLy's smarLphone
buslness Lo Lenovo Croup for $2.9 bllllon.
1he deal announced Wednesday wlll rld Coogle
lnc. of a nanclal headache LhaL has plagued Lhe
company slnce buylng MoLorola MoblllLy for
$12.4 bllllon ln 2012. MoLorola has losL nearly $2
bllllon slnce Coogle Look over ln May 2012 whlle
Lrlmmlng lLs workforce from 20,000 Lo 3,800.
Coogle ls reLalnlng mosL of MoLorola's poruollo of
moblle paLenLs, provldlng Lhe company wlLh legal
proLecuon for lLs wldely used Androld soware
for smarLphones and LableL compuLers. Calnlng
conLrol of MoLorola's paLenLs was Lhe maln
reason Coogle CLC Larry age declded Lo make
Lhe mosL expenslve acqulsluon ln Lhe lnLerneL
company's 13-year hlsLory.
Chlna's Lenovo Croup ls plcklng up abouL 2,000
MoLorola paLenLs ln addluon Lo Lhe phone
manufacLurlng operauons.
GOOGLE SELLING MOTOROLA PHONE
BUSINESS TO LENOVO
30

33
lf you've been anywhere near Lhe Apple
webslLe ln recenL days, you're probably aware
LhaL Lhe venerable Mac ls now 30 years old.
Why? Well, Lhe Callfornlan glanL has le no
sLone unLurned ln celebraung Lhe mllesLone,
wlLh a vldeo summarlzlng [usL how much of
an lmpacL Lhe landmark compuLer has made
on Lhe world slnce lLs early '80s launch.
Sald vldeo feaLures varlous creauve Lypes
uuerlng such phrases as 1here was a smlley
face, Lhere was a sense of humor somehow
bullL ln" and Somehow lL's so LransparenL Lo
an experlence, LhaL lL [usL enllvens you", Lhe
premler purveyor of '90s Lechno Moby also
chlpplng ln wlLh hls observauon LhaL Now
everyone uses this one piece of remarkable,
ubiquitous technology. 1he webslLe also
feaLures an lnLeracuve umellne of Lhe Mac
and a quesuonnalre Lhrough whlch former
and presenL users of Lhe machlne can [oln ln
wlLh Lhe remlnlsclng.
8uL of course, as wlLh so many hlghly
celebraLed success sLorles, you shouldn'L leL
such a sllck repackaglng of hlsLory mlslead
you. 1he LruLh ls LhaL Lhe Mac sLory ls one
as full of blood, sweaL and Lears as any
oLher, one lled wlLh legendary personallues
- and personallLy clashes. Much drama
underplnned Lhe reallzauon of Lhe rsL ever
Mac, Lhe 128k, back ln 1984, when laLe CLC
SLeve !obs performed Lhe rsL of whaL would
be many memorable live demos of iconic
Apple producLs.
34

DRAWING THE BATTLE LINES WITH IBM

lndeed, !obs hlmself was more cenLral Lhan
anyone else Lo Lhe MaclnLosh's ups and
downs, and Lhere were cerLalnly downs as
well as ups. !usL ask !ohn Sculley, who ln 1983,
famously forced !obs' exlL from Lhe company
he co-founded.
8uL rsL, leL's Lake Lhe sLory a few years
furLher back, Lo AugusL 1981. l8M - a
somewhaL more esLabllshed company Lhan
Apple - had lnLroduced lLs own personal
compuLer, and ever-eager Lo keep abreasL
of Lhe compeuuon, !obs had one purchased
so LhaL lL could be dlssecLed by hls Leam.
WhaL Lhey found dld noL lmpress Lhem. 1he
machlne was descrlbed as a half-assed,
hackneyed auempL" by colleague Chrls
Lsplnosa, and lLs use of ouLmoded command-
llne prompLs and lack of supporL for
blLmapped graphlcal dlsplays perhaps made
LhaL a reasonable crluclsm.
noneLheless, Apple musL have Laken Lhe
challenge serlously enough, glven LhaL lL
lnsplred a famous full-page ad ln Lhe Wall
SLreeL !ournal, headllned Welcome, l8M.
Serlously." !obs was cannlly posluonlng hls
rm ln Lhe publlc mlndseL as Lhe plucky
uavld, Lo Lhe CollaLh LhaL was l8M. 8uL lL also
become clear soon enough LhaL !obs was far
from a whole-hearLed admlrer of sald CollaLh,
commenung ln an lnLervlew aL Lhe ume LhaL
lf, for some reason, we make some glanL
mlsLakes and l8M wlns, my personal feellng ls
LhaL we are golng Lo enLer sorL of a compuLer
uark Ages for abouL LwenLy years."
Pe conunued: Cnce l8M galns conLrol of
a markeL secLor, Lhey almosL always sLop
lnnovauon." 1he lmpllcauon was clear: Lhls
was noL someLhlng LhaL Apple would be gullLy
of under hls waLch.
36
37
BATTLES AT THE DRAWING BOARD
WITHIN APPLE
Powever, Lhere was anoLher devlce LhaL Lhe
edgllng MaclnLosh was eecuvely compeung
agalnsL, one LhaL had yeL Lo hlL sLore shelves,
and worse Lhan LhaL, was acLually Apple's
own. 1haL machlne was Lhe Llsa, Lhe rsL
consumer compuLer Lo have a graphlcal user
lnLerface or Cul. !obs had been lnvolved ln
Lhls pro[ecL, Loo - unul he was booLed o ln
1983 by Sculley, Lhe one-ume presldenL of
epsl-Cola LhaL Jobs had ironically lured to
Apple in April of that year.
!obs, lnsLead, was puL aL Lhe helm of Lhe
MaclnLosh pro[ecL LhaL !e 8askln had begun.
1hus began a deLermlned rlvalry beLween
Lwo pro[ecLs LhaL proved lnsLrumenLal Lo
Apple becomlng Lhe pre-emlnenL player
ln personal compuung LhaL lL ls Loday. 1he
MaclnLosh, Loo, !obs declded, was golng Lo
have a graphlcal user lnLerface. Powever, Lhe
alm was also for lL Lo be much less expenslve
Lhan Lhe Llsa, so lL dldn'L Lake long for head
honchos aL Apple Lo reallze LhaL Lhe Llsa's
chances could already be numbered.
1haL was cerLalnly Lhe verdlcL of an englneer
responslble for much of Lhe deslgn of Lhe
Llsa, 8lch age, accordlng Lo WalLer lsaacson's
celebraLed blography of SLeve !obs. 1he sLory
goes LhaL age bursL lnLo a room where Lhe
Mac proLoLype was belng demonsLraLed
38

before 23 englneers Lo complaln voclferously

LhaL 1he MaclnLosh ls golng Lo desLroy Lhe
Llsa! 1he MaclnLosh ls golng Lo ruln Apple!"
Addlng LhaL nobody's golng Lo buy a Llsa
because Lhey know Lhe Mac ls comlng", age
dlrecLed hls lre aL !obs, asklng colleagues Lo
1ell SLeve LhaL he's desLroylng Apple!"
HOW JOBS PHILOSOPHY AND VALUES
WERE EXERCISED
Cf course, lL's Lrue LhaL llke so many greaL
leaders, !obs placed a greaL emphasls on
conLrol. Powever, hls chosen dlrecuon for
Lhe Mac was abouL so much more Lhan peuy
revenge. 1here was a wlder phllosophy Lo hls
conLrol freakery, a meLhod Lo hls madness.
Conslder, for example, hls declslon Lo
avold deslgnlng Lhe Mac so LhaL lL could
be compauble wlLh many of Lhe same
soware programs as Lhe Llsa, as Larry
1esler, Lhe manager of appllcauon soware
for LhaL machlne, had envlsaged. As far as
!obs was concerned, a compuLer wasn'L
Lruly greaL unless Lhere was a ughL llnk
beLween Lhe hardware and Lhe soware. A
compuLer wlLh Lhe ablllLy Lo run soware
LhaL could also work on oLher compuLers
dld noL exacLly L lnLo LhaL phllosophy - he
reckoned LhaL funcuonallLy would always be
sacrlced as a resulL.
!obs Look a whole-wldgeL approach LhaL
would cerLalnly come Lo dlsungulsh Lhe Mac
from Lhe ablllLy of Mlcroso's operaung
sysLems Lo be used on many oLher companles'
hardware. 1he operaung sysLem of Lhe Mac
would work solely on Lhe Mac, and LhaL
would be LhaL.
As ZuneL's edlLor uan larber laLer explalned:
!obs ls a sLrong-wllled, ellLe arusL who
doesn'L wanL hls creauons muLaLed
Photo: Moshe Brakha
42

lnausplclously by unworLhy programmers. lL

would be as lf someone o Lhe sLreeL added
some brush sLrokes Lo a lcasso palnung or
changed Lhe lyrlcs Lo a uylan song."
Such a drlve for compleLe conLrol of Lhe user
experlence dld much Lo mark ouL Lhe deslgn
of Lhe Mac from lLs compeuLors, buL lL also
slgnlcanLly conLrlbuLed Lo !obs' downfall and
lnlual exlL from Apple.
THE TENSIONS THAT DEFINED AND
SnALD MID'80S ALL
1he lnlual plan for Lhe Sculley-!obs
parLnershlp was LhaL whlle Sculley would
exerclse hls maglc on Lhe markeung slde
of Lhlngs, hopefully emulaung hls success
aL epsl ln drawlng markeL share away
from Coke, Lhe acLual Lechnology would
be very much !obs' domaln. Powever, ln
anoLher eplsode LhaL was Lo shape boLh Lhe
MaclnLosh and Apple lLself, con|ct soon
arose between the two.
WlLh Lhe MaclnLosh only selllng 30,000 unlLs
ln Lhe 74 days slnce lLs lnLroducuon, and sales
deLerloraung yeL furLher over Lhe course
of 1984, Lhe Lwo men evenLually began Lo
polnL ngers aL each oLher. naLurally, Sculley
blamed !obs, whlle Lhe lauer man conLended
LhaL Sculley was noL managlng company
resources as well as he could.
1he worsL aspecLs of !obs' worklng meLhods
began Lo become ever more apparenL Lo hls
colleagues. ln Lhe words of one of Lhe Mac
developmenL Leam's orlglnal members, Andy
Perzfeld, SLeve !obs had never suered
43
fools gladly, and as Lhe pressure mounLed,
he became even more dlmculL Lo work wlLh.
Lmployees from every parL of Lhe company
began Lo approach !ohn wlLh complalnLs
abouL SLeve's behavlor, lncludlng some
of SLeve's dlrecL reporLs ln Lhe MaclnLosh
ulvlslon."
8y Aprll 1983, relauons beLween !obs and
Sculley had reached a new low. AL Lhe
dlrecuon of Sculley, auempLs were made by
Lhe Apple board Lo geL !obs Lo accepL more
of a producL vlslonary role. 8uL !obs re[ecLed
Lhe ldea, pumng pressure of hls own on Lhe
board Lo dlLch Sculley as Lhe company's CLC.
lasL-forward Lo a falled power coup by !obs,
and Lhe board denluvely slded wlLh Sculley,
and !obs was sLrlpped of all auLhorlLy aL Lhe
company he co-founded.
Several monLhs laLer, ured of hls much-
reduced role, !obs nally reslgned from Apple.
THE MACS CONSIDERABLE AND
CONTINUING INFLUENCE
As we have seen, Lhe Mac's reallzauon came
aL a conslderable professlonal and personal
cosL Lo lLs godfaLher, SLeve !obs. 8uL whaL lay
ahead for Lhe Mac lLself?
1he answer Lo LhaL quesuon ls lnlually, noL
much. When rsL unvelled, many observers
saw lL as a drasuc deparLure from Lhe
compuung wlLh whlch Lhey were famlllar,
buL were unsure of lLs poLenual. nor, as
aforemenuoned, dld lLs radlcal lnLerface
LranslaLe lnLo mammoLh sales, aL leasL aL
rsL. Sales were a long way shorL of Apple's
hopes, and lL Look a whlle for Lhe machlne
Lo be appreclaLed ouLslde Lhe re|anve|y
n|che c|rc|es of pub||shers, graph|cs arnsts
and educators.
Photo: Sarah Tew
46

WlLh l8M compuLers belng favored by

corporaLe users, lL seemed for some ume LhaL
!obs' worsL fears may be reallzed. Slowly buL
surely, however, Lhe Mac began Lo be seen as
Lhe revoluuonary momenL ln compuung LhaL
lL was. LlemenLs of lLs deslgn and funcuonallLy
Lurned up on oLher hardware and operaung
sysLems, from Lhe lcons LhaL people could
cllck Lo run programs, Lo Lhe meLaphor of a
'Lrash can' for deleung les.
1hls machlne wasn'L merely one of Lhe
rsL consumer compuLers LhaL gave users a
graphlcal lnLerface wlLh whlch Lo navlgaLe.
nor could lLs success be solely aurlbuLed Lo
belng so much cheaper Lhan Lhe Llsa and
oLher compuLers LhaL were earller Lo markeL
wlLh some of lLs denlng feaLures, alLhough
of course, LhaL auracuve prlce Lag cerLalnly
dldn'L hurL.
8eally, whaL Lhe Mac amounLed Lo was an
overhaul ln Lhe people used and LhoughL of
compuLers. Compuung and publlshlng were
no longer Lhe preserve of Lhe nerds. now, Lhe
average person on Lhe sLreeL could embrace
Lhem, accesslng fonLs and oLher Lools LhaL
only professlonal prlnLers could once access,
and uslng Lhelr deskLops Lo easlly creaLe Lhelr
own publlcauons, such as brochures and
newsleuers. Such ldeas all seemed preuy
fanclful back ln 1984.
48

MAC V WINDOWS: ANOTHER RIVALRY

THAT CHANGED COMPUTING
lf you've been readlng lnLenLly so far, and
have even Lhe falnLesL famlllarlLy wlLh Lhe
varlous lLerauons of Mlcroso Wlndows - and
who doesn'L? - you may have nouced qulLe
a few feaLures LhaL are domlnanL feaLures of
LhaL plauorm Loday. 1he lnuence was hardly
momenLary, elLher - lL conunues Loday. As
recenLly as 2009 and Lhe release of Wlndows
7, Mlcroso was forced Lo deny LhaL Lhe
operanng system had been |nsp|red by the
Macs graphical look and feel.
Such aspecLs as Lhe unlform copylng and
pasung of LexL and deleuon of les from one
appllcauon Lo anoLher, as well as Lools llke Lhe
WhaL ?ou See ls WhaL ?ou CeL (W?SlW?C)
edlLor and Lhe ablllLy Lo change fonLs and
Lypeface slzes, were all elLher ploneered or
popularlzed wlLh Lhe help of Lhe Mac. Cf
course, Lhese were all feaLures LhaL have
subsequenLly become second naLure Lo
Wlndows operaung sysLems.
1he MaclnLosh also very much lald Lhe ground
for oLher lnnovauve Apple devlces produced
aer !obs' reLurn Lo Lhe company ln Lhe
laLe 1990s, from Lhe colorful lMac and rsL
lod muslc player ln 2001, Lo Lhe lhones
and lads of Lhe laLe 2000s and early 2010s.
Above all, Lhe Mac has helped Lo make Lhe
personal compuLer Lruly ublqulLous, and Lhls
publlcauon can only wlsh Lhe Mac a very
happy blrLhday as lL enLers lLs 30s.
LeL's hope Lhe nexL 30 years are [usL as
good!
by 8en[amln kerry & Cavln Lenaghan
30

iOS
#01 Flipagram
By Cheerful, Inc.
Category: Photo & Video
Requires iOS 5.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#02 Rayman Jungle Run
By Ubisoft
Category: Games
Requires iOS 5.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#03 Snapchat
By Snapchat, Inc.
Category: Photo & Video
Requires iOS 5.0 or later. Compatible with iPhone, iPad 2, iPad (3rd gen), iPad (4th gen),
iPad mini, iPod touch (4th gen), and iPod touch (5th gen). This app is optimized for
iPhone 5.
#04 QuizUp: The biggest trivia game in the world!
By Plain Vanilla Corp
Category: Games
Requires iOS 5.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#05 Facebook Messenger
By Facebook, Inc.
Category: Social Networking
Requires iOS 6.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#06 Instagram
By Instagram, Inc.
Category: Photo & Video
Requires iOS 6.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#07 12 Days of Gifts
By iTunes
Category: Entertainment
Requires iOS 7.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#08 YouTube
By Google, Inc.
Category: Photo & Video
Requires iOS 6.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#09 Candy Crush Saga
By King.com Limited
Category: Games
Requires iOS 4.3 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#10 Facebook
By Facebook, Inc.
Category: Social Networking
Requires iOS 5.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.

#01 OS X Mavericks
By Apple
Category: Productivity
Compatibility: OS X 10.6.8 or later
#06 The Unarchiver
By Dag Agren
Category: Utilities
Compatibility: OS X 10.6.0 or later
#07 Xcode
By Apple
Category: Developer Tools
Compatibility: OS X 10.8.4 or later
#08 Fotor Photo Editor Photo Efect & Collage Maker
By Chengdu Everimaging Science and Technology Co., Ltd
Category: Photography
Compatibility: OS X 10.6 or later, 64-bit processor
#09 Disk Diag
By Rocky Sand Studio Ltd.
Category: Utilities
Compatibility: OS X 10.8 or later, 64-bit processor
#02 GarageBand
By By Apple
Category: Music
Compatibility: OS X 10.9 or later
#10 Microsoft Remote Desktop
By Microsoft Corporation
Category: Business
Compatibility: OS X 10.6.0 or later
#04 TurboTax 2013
By Intuit Inc.
Category: Finance
Compatibility: OS X 10.8.2 or later, 64-bit processor
Mac OS X
#03 Kindle
By AMZN Mobile LLC
Category: Reference
Compatibility: OS X 10.6 or later
#05 Evernote
By Evernote
Category: Productivity
Compatibility: OS X 10.6.6 or later

#01 Heads Up!

By Warner Bros.
Category: Games / Price: $0.99
Requires iOS 5.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#02 Minecraft Pocket Edition
By Mojang
Category: Games / Price: $6.99
Requires iOS 5.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#04 Sky Guide: View Stars Night or Day
By Fifth Star Labs LLC
Category: Reference / Price: $1.99
Requires iOS 6.0 or later. Compatible with iPhone 4, iPhone 4S, iPhone 5, iPhone 5c,
iPhone 5s, iPad, and iPod touch. This app is optimized for iPhone 5.
#05 Ski Safari: Adventure Time
By Cartoon Network
Category: Games / Price: $0.99
Requires iOS 4.3 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#06 AfterLight
By Simon Filip
Category: Photo & Video / Price: $0.99
Requires iOS 5.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#07 Wipeout
By Activision Publishing, Inc.
Category: Games / Price: $1.99
Requires iOS 5.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#08 Survival Games
By JoyDo Entertainment
Category: Games / Price: $0.99
Requires iOS 4.3 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#09 Plague Inc.
By Ndemic Creations
Category: Games / Price: $0.99
Requires iOS 4.3 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
#10 Need for Speed Most Wanted
By Electronic Arts
Category: Games / Price: $6.99
Requires iOS 4.0 or later. Compatible with iPhone 3GS, iPhone 4, iPhone 4S, iPhone 5,
iPhone 5c, iPhone 5s, iPad, iPod touch (3rd generation), iPod touch (4th generation), and
iPod touch (5th generation). This app is optimized for iPhone 5.
#03 Cut the Rope 2
By ZeptoLab UK Limited
Category: Games / Price: $0.99
Requires iOS 4.3 or later. Compatible with iPhone, iPad, and iPod touch. This app is opti-
mized for iPhone 5.
iOS

#05 Pixelmator
By Pixelmator Team
Category: Graphics & Design / Price: $29.99
Compatibility: OS X 10.8.5 or later, 64-bit processor
#06 Civilization V: Campaign Edition
By Aspyr Media, Inc.
Category: Games / Price: $20.99
Compatibility: OS X 10.6.8 or later
#09 Day One
By Bloom Built, LLC
Category: Lifestyle / Price: $9.99
Compatibility: OS X 10.7.4 or later, 64-bit processor
#08 Logic Pro X
By Apple
Category: Music / Price: $199.99
Compatibility: OS X 10.8.4 or later, 64-bit processor
#10 Aperture
By Apple
Category: Photography / Price: $79.99
Compatibility: OS X 10.9 or later
#04 Duplicate Detective
By FIPLAB Ltd
Category: Utilities / Price: $1.99
Compatibility: OS X 10.7 or later, 64-bit processor
#07 BetterSnapTool
By Andreas Hegenberg
Category: Productivity / Price: $1.99
Compatibility: OS X 10.6 or later, 64-bit processor
#03 RollerCoasterTycoon 3 Platinum
By Aspyr Media, Inc.
Category: Games / Price: $19.99
Compatibility: OS X 10.7.5 or later
#02 FaceTime
By Apple
Category: Social Networking / Price: $0.99
Compatibility: OS X 10.6.6 or later
#01 Disk Doctor
By FIPLAB Ltd
Category: Utilities / Price: $2.99
Compatibility: OS X 10.7.3 or later, 64-bit processor
Mac OS X

Rotten Tomatoes
61%
Movies
TV Shows
&
by Jill Soloway
Genre: Comedy
Released: 2013
Price: $12.99
131 Ratings

Afternoon Delight
This comedy drama has been written and
directed by Jill Soloway, who won a Directing
Award for the feature at the 2013 Sundance
Film Festival. The movie tells the story of a
stay-at-home mom called Rachel, played
by Kathryn Hahn, who becomes frustrated
with her sexless marriage and so visits a strip
club to brighten up her life. There, she meets
a stripper called McKenna, played by Juno
Temple, who becomes Rachels live-in nanny.
FIVE FACTS:
1. For this flm, Soloway won the Directing
Award (United States, Drama) at the 2013
Sundance Film Festival, where the movie also
had its premiere, on January 26 2013.
2. The movie also screened at other
festivals, both national and international,
and was nominated for several awards
including a Gotham Award for Breakthrough
Performance for Kathryn Hahn and a Spirit
Award for First Feature.
3. All of this acclaim is impressive considering
that Afternoon Delight is the feature-length
movie directorial debut of Soloway, who
has otherwise made a name for herself as a
comedian, feminist, playwright and Emmy-
nominated writer for television.
4. On the subject of what inspired the
movie, Soloway has remarked: Theres a lot
of me in Rachels journey. Ive never brought a
stripper home, but Ive always loved reading
the memoirs of strippers and sex workers. I
feel like theyre the war reporters for women.
5. Afternoon Delight is already an iTunes hit,
as it has reached number eight in the list
of top 10 indie movies in the iTunes Store in
North America.
Trailer

Interview with Josh Radnor and Kathryn Hahn

Rambo: The
Complete Collectors
Set
How much introducing do these movies really
need? Rambo is, of course, the popular action
movie series that stars Sylvester Stallone as
troubled Vietnam War veteran John Rambo.
The series is inspired by the David Morrell
novel First Blood and sees Rambo drawing
upon his skills in survival, weaponry and
hand-to-hand combat across the franchises
four high adrenaline movies, all of which are
included in this, The Complete Collectors Set.
FIVE FACTS:
1. The series began with Rambo: First Blood in
1982, followed by Rambo: First Blood Part II in
1985, Rambo III in 1988 and Rambo in 2008.
2. Before Stallone took the role of Rambo for
the frst movie, actors considered included
Clint Eastwood, Al Pacino, Robert De Niro, Steve
McQueen, John Travolta and Dustin Hofman.
3. In a 2008 list of The 500 Greatest Movies
of All Time compiled by Empire magazine,
Rambo: First Blood was ranked 253rd.
4. Although the original working title for
the fourth movie, Rambo, was John Rambo,
this was changed as Stallone feared that
audiences would perceive the movie as the
fnal instalment in the Rambo series. However,
the title John Rambo was kept in many other
countries where the frst movie, Rambo: First
Blood, had been released as Rambo.
5. The fourth movie, Rambo, is dedicated
to the memory of Richard Crenna, who
played Col. Sam Trautman in the frst three
instalments in the series and died of heart
failure in 2003.
Genre: Action & Adventure
Regular Price: $59.96 (HD),
$39.96
13.41 GB (HD), 5.22 GB
Audio: Stereo (English)
47 Ratings

Trailer for Rambo: First Blood

Interview with Sylvester Stallone for Rambo
61

Rotten Tomatoes
37%
Rotten Tomatoes
87%
Rotten Tomatoes
29%
Rotten Tomatoes
36%
63
Music

Genre: Dance
Released: Jan 24, 2014
33 Songs
Price: $11.99
95 Ratings
Contact
ATB
Contact is the 9th studio album by German
DJ and musician Andr ATB Tanneberger.
ATB has an enviable reputation as a DJ; in
DJ Magazines ofcial world DJ rankings, he
was ranked 11th in 2009 and 2010 and 15th
in 2011. It was also in 2011 that he was rated
the worlds best DJ in The DJ List. He is most
famous for 9PM (Till I Come), the title song of
the game FIFA Premier League All Stars 1999.
FIVE FACTS:
1. Tanneberger has enthused: Contact is a
musical collection of my experiences and
travels from roughly the last three years,
since my last album Distant Earth, adding:
Ive covered a lot of miles again in this phase,
sought out contact with fantastic, inspiring
people, which made the choice of album title
almost inevitable.
2. The albums recently-released lead single is
Face to Face and features the German band
Stanfour.
3. Markos Papadatos of Digital Journal
describes Face to Face as melodically
stunning and a true masterpiece in every
sense, adding that its beats are catchy and
the vocals by Stanfour are equally captivating.
It is soothing to listen to and worthy of the
repeat button on ones mp3 player.
4. In their review of the album, DJOYbeat
describe songs on Contact as providing a
near perfect listening experience. They
award the album fve stars out of fve and
declare: Its only January, but Contact could
be a contender for one of the best albums of
the year - its that good.
Contact (Ofcial Minimix HD)

Interview with ATB

66
5. Earmilk observe in their review of the
album that ATB has still drawn impressive
crowds to his shows, kept his festival and
performance circuit consistent and remained
a relevant force in dance music, adding that,
with Contact, he recently proved to us why
he is so.
67
Highway
(Original Motion Picture Soundtrack)
A. R. Rahman
This is the soundtrack album for the 2014
Bollywood romantic drama movie Highway.
The movie is directed by Imtiaz Ali and stars
Randeep Hooda and Alia Bhatt, while the
soundtrack album has been composed by
the hugely prominent and prolifc Indian
musician A. R. Rahman. Rahmans work has
won him an impressive list of accolades,
which include two Academy Awards, two
Grammy Awards and a BAFTA Award.
FIVE FACTS:
1. Rahman has been described by Time as the
worlds most prominent and prolifc movie
composer.
2. Rahmans list of honors is particularly
impressive and includes two Academy
Awards, two Grammy Awards, a BAFTA Award,
a Golden Globe, four National Film Awards,
ffteen Filmfare Awards and thirteen Filmfare
Awards South.
3. Though the album includes nine original
songs, including eight with lyrics written
by Irshad Kamil and one with lyrics written
by Lady Kash and Krissy, it was originally
intended that the flm would have only a
background score and not any songs.
4. The album is already an iTunes hit! The
tracks Maahi Ve and Patakha Guddi (Female
Version) have each reached number two on
the iTunes India single chart, while the album
debuted at number one on the iTunes India
album chart.
Maahi Ve
Genre: Soundtrack
Released: Jan 25, 2014
9 Songs
Price: $9.99
29 Ratings

5. Rahman has revealed that, for some of the

songs, he has defned the soundscape by
using the characters internal journey
as a map. For Maahi Ve for example, he
has used sounds from Punjab and made the
soundscape particularly futuristic.
Interview with A. R. Rahman
71
1he u.S. governmenL and leadlng lnLerneL
companles on Monday announced a
compromlse LhaL wlll allow Lhose companles
Lo reveal more lnformauon abouL how oen
Lhey are ordered Lo Lurn over cusLomer
lnformauon Lo Lhe governmenL ln nauonal
securlLy lnvesugauons.
1he !usuce ueparLmenL reached agreemenLs
wlLh Coogle lnc., Mlcroso Corp., ?ahoo lnc.,
lacebook lnc. and Llnkedln Corp. LhaL would
resolve Lhose companles' legal challenges before
Lhe lorelgn lnLelllgence Survelllance CourL. 1he
companles had asked [udges Lo allow Lhem Lo
dlsclose daLa on nauonal securlLy orders Lhe
companles have recelved under Lhe lorelgn
lnLelllgence Survelllance AcL.
1he dellvery of cusLomer lnformauon Lo Lhe
governmenL from lnLerneL companles has been
under examlnauon ln Lhe unlLed SLaLes followlng
leaks abouL nauonal SecurlLy Agency survelllance
by former nSA sysLems analysL Ldward Snowden.
US, INTERNET COMPANIES REACH
DEAL ON DISCLOSURE
72
73
Some of Lhose companles were among several
u.S. lnLerneL buslnesses ldenued as glvlng Lhe
nSA access Lo cusLomer daLa under Lhe program
known as 8lSM. 8uL Lhe companles had sald
Lhey wanLed Lo make Lhe dlsclosures ln order
Lo correcL lnaccuracles ln news reporLs and Lo
calm publlc speculauon abouL Lhe scope of Lhe
companles' cooperauon wlLh Lhe governmenL.
1he provlders wanLed Lo show LhaL only a uny
fracuon of Lhelr cusLomers' accounLs have been
sub[ecL Lo legal orders.
1he governmenL had opposed Lhose requesLs,
buL reached a deal wlLh Lhe companles laLe lasL
week LhaL would glve cusLomers a beuer ldea of
how much lnformauon ls belng collecLed.
ermlmng dlsclosure of Lhls aggregaLe daLa
addresses an lmporLanL area of concern Lo
communlcauons provlders and Lhe publlc,"
Auorney Ceneral Lrlc Polder and ulrecLor of
nauonal lnLelllgence !ames Clapper sald ln a
[olnL sLaLemenL.
74

1he ve companles welcomed Lhe deal, buL sald

more needs Lo be done. We led our lawsulLs
because we belleve LhaL Lhe publlc has a rlghL Lo
know abouL Lhe volume and Lypes of nauonal
securlLy requesLs we recelve," Lhe companles sald
ln a [olnL sLaLemenL. Whlle Lhls ls a very posluve
sLep, we'll conunue Lo encourage Congress Lo
Lake addluonal sLeps Lo address all of Lhe reforms
we belleve are needed."
Apple also released a sLaLemenL. We belleve
sLrongly LhaL our cusLomers have Lhe rlghL Lo
undersLand how Lhelr personal lnformauon
ls belng handled, and we are pleased Lhe
governmenL has developed new rules LhaL allow
us Lo more accuraLely reporL law enforcemenL
76
orders and nauonal securlLy orders ln Lhe u.S.,"
Lhe company sald on lLs webslLe.
Sen. 8on Wyden called lL a posluve rsL sLep."
`'1hough Lhere ls sull a greaL deal of work Lo do,
todays announcement is good for American
companles and Lhe Amerlcans Lhey employ and
serve," he sald.
lollowlng Lhe Snowden leaks, Lhe l8l allowed
communlcauons provlders Lo reporL ln a
llmlLed way Lhe number of orders for daLa Lhey
recelved from Lhe governmenL and Lhe number
of accounLs aecLed by such orders. Powever,
Lhe l8l only agreed Lo dlsclosure of a slngle,
aggregaLe number of crlmlnal and nauonal
securlLy-relaLed orders Lo Lhe companles from
all u.S. governmenLal enuues, plus local and
sLaLe enuues.
77

under Lhe compromlse announced Monday,

lnLerneL companles wlll be able Lo release more
lnformauon, buL sull only ln very general Lerms
when lL comes Lo nauonal securlLy lnvesugauons.
1hey can reporL Lhe number of crlmlnal-relaLed
orders from Lhe governmenL. 1hey also wlll be
able Lo release, rounded Lo Lhe nearesL Lhousand,
Lhe number of secreL nauonal securlLy-relaLed
orders from governmenL lnvesugaLors, Lhe
number of nauonal securlLy-relaLed orders from
Lhe llSA courL, and Lhe number of cusLomers
aecLed by boLh. ln Lhe llSA orders, Lhe
companles wlll be able Lo say Lhe number of
requesLs for personal lnformauon abouL Lhelr
cusLomers versus Lhelr acLual e-malls.
1he companles can also choose a slmplled
reporung process LhaL allows Lhem Lo reporL
Lhe number of crlmlnal-relaLed orders, and
Lhen nauonal securlLy or lnLelllgence orders
ln lncremenLs of 230 and Lhe LoLal number of
cusLomers LargeLed, also ln groups of 230.
1hese new reporung meLhods enable
communlcauons provlders Lo make publlc
more lnformauon Lhan ever before abouL Lhe
orders LhaL Lhey have recelved Lo provlde daLa
Lo Lhe governmenL," uepuLy Auorney Ceneral
!ames M. Cole sald ln a leuer Lo Lhe ve
lnLerneL companles.
79

1he companles wlll have Lo delay releaslng

Lhe number of nauonal securlLy orders by slx
monLhs. 1hey also had Lo promlse LhaL lf Lhey
come up wlLh new Lechnology or new forms of
communlcauon, Lhey are noL able Lo reveal LhaL
Lhe governmenL can Lap lnLo LhaL new Lechnology
for Lwo years.
1he Amerlcan Clvll Llberues unlon, whlch led
a brlef supporung Lhe Lech rms ln Lhelr bld Lo
dlsclose more lnformauon, sald Monday LhaL Lhe
deal parually" lled an lnformauon gag on Lhe
companles. 8uL Lhe group pralsed Lhe agreemenL
as a vlcLory for Lransparency."
Alex Abdo, a lawyer wlLh Lhe ACLu's nauonal
SecurlLy ro[ecL, sald: lL ls commendable LhaL
Lhe companles pressed Lhe governmenL for
more openness, buL even more ls needed.
Congress should requlre Lhe governmenL Lo
publlsh baslc lnformauon abouL Lhe full exLenL
of lLs survelllance."
81
STEVE WOZNIAK ANNOUNCED AS
OPENING KEYNOTE SPEAKER AT APPS
WORLD IN SAN FRANCISCO
Photo: Glauco Ribeiro

Apple co-founder SLeve Woznlak has been

announced as Lhe headllne speaker aL nexL
week's Apps World norLh Amerlca evenL ln
San lranclsco. Apps World ls reLurnlng Lo San
lranclsco wlLh Lhe Lwo day evenL expecung
Lo auracL more Lhan 8,000 auendees and ls
deslgned Lo dellver Lhe laLesL lnslghL lnLo Lhe
mulu-plauorm apps ecosysLem.
keynoLe speaker SLeve Woznlak wlll be sharlng
hls experlences and lnslghLs lnLo Lhe lndusLry wlLh
developers ln Lhe ueveloper World conference
sLream aL 9.10 on lebruary 3Lh, openlng Lhe
Lwo day show. SLeve's keynoLe address wlll
be followed by a llve C & A sesslon wlLh Lhe
audlence.
Woznlak sald: l'm dellghLed Lo be speaklng aL
Apps World, sharlng my experlence of 30 years
ln Lhe moblle and compuung lndusLry, as well as
learnlng from and feedlng o Lhe passlon and
enLhuslasm of Lhe app developer communlLy ln
auendance."
83
Meanwhlle aul lrlsh, ueveloper AdvocaLe,
Chrome and krlsuan SegersLrale, co-founder of
laysh wlll also be [olnlng Lhe keynoLe llne up,
glvlng Lhelr lnslghLs and experlences of Lhe apps
lndusLry and leadlng a sLellar llne-up of over 300
lndusLry leaders.
Alongslde Lhe 11 workshops aL Lhe show coverlng
Lhe enure ecosysLem lncludlng 8eLall, aymenLs,
P1ML3, Al sLraLegy, moblle sLraLegy and 1v apps
Lhere wlll also be 2 llve hackaLhons happenlng on
Lhe exhlbluon oor and 7 sLarL up zones demolng
Lhe nexL wave of app Lechnologles.
lan !ohnson, Mu of Slx uegrees who organlses
Apps World sald: We're dellghLed Lo welcome
SLeve, aul and krlsuan Lo Lhls year's evenL, glvlng
Lhelr perspecuves on Lhe moblle app ecosysLem."
1o see SLeve Woznlak, aul lrlsh and krlsuan
auendees can reglsLer here
84
AS WC8Lu
now ln lLs 4Lh year, Apps World has grown Lo be
Lhe leadlng global mulu-plauorm apps evenLs
coverlng moblle, 1v, P1ML3, enLerprlse, gamlng
and more. 1hls year's evenL ls Lhe second year
Lhe Apps World serles has vlslLed San lranclsco.
WlLh over 8,000 developers, moblle markeLers,
moblle operaLors, devlce manufacLurers, plauorm
owners and lndusLry professlonals expecLed for
Lwo days of hlgh level lnslghL and dlscusslon.
Photo: Glauco Ribeiro
83

Apple lnc.'s experlmenL wlLh rolllng ouL Lwo

new lhones aL Lhe same ume backred as
weak demand for Lhe cheaper verslon wlLh
a plasuc case led Lhe company Lo sell fewer
smarLphones Lhan expecLed durlng Lhe
hollday quarLer.
AlLhough Apple on Monday reporLed record
revenue for lLs rsL quarLer, whlch ended ln
uecember, Lhe 31 mllllon lhones lL sold fell
shorL of Lhe 33 mllllon unlLs LhaL Wall SLreeL
analysLs had expecLed. 1hose so sales
coupled wlLh a surprlslngly weaker ouLlook for
Lhe currenL quarLer senL Lhe company's sLock
Lumbllng more Lhan 8 ln aer-hours Lradlng.
lor Lhe rsL ume ln lLs hlsLory, Apple
lnLroduced Lwo new lhones ln SepLember:
Lhe prlcler lhone 3s LhaL sporLed new
feaLures such as ngerprlnL lu and a more
powerful camera, and Lhe lhone 3c LhaL cosL
abouL $100 less and came ln array of colorful
plasuc cases.
Apple Chlef Lxecuuve 1lm Cook sald durlng
a conference call wlLh analysLs LhaL sales
were hurL ln parL by changes ln carrlers'
88
upgrade pollcles LhaL caused some cusLomers
Lo delay gemng new phones. 8uL he also
acknowledged LhaL more cusLomers Lhan
expecLed wanLed Lhe more expenslve lhone
3s and fewer Lhan expecLed wanLed Lhe 3c,
whlch was Lhe focus of Lhe company's lnlual
markeung push.
AlLhough reLallers oered slzable dlscounLs
Lo move lhone 3c unlLs slmng on Lhelr
shelves, Apple had Lo ramp up producuon
of Lhe 3s LhroughouL Lhe quarLer ln a race
Lo meeL demand.
l Lhlnk lasL quarLer we dld a Lremendous [ob,
parucularly glven Lhe mlx was someLhlng very
dlerenL Lhan we LhoughL," Cook sald. lL was
Lhe rsL ume we had ever run LhaL parucular
play before, and Lhe demand percenLage
Lurned ouL Lo be dlerenL Lhan we LhoughL."
!usL as Lroubllng Lo many analysLs was Lhe
company's ouLlook for Lhe currenL quarLer,
whlch ends ln March. Apple sald revenue
ln Lhe quarLer would be $42 bllllon Lo $44
bllllon, shorL of Lhe analysL consensus of
$46.1 bllllon.
89
1he lower guldance was parucularly
surprlslng because Lhls monLh Apple sLarLed
selllng Lhe lhone Lhrough Chlna Moblle,
Lhe world's largesL carrler. Many analysLs
had assumed Lhe new parLnershlp would aL
Lhe very leasL oseL any oLher weaknesses,
lf noL boosL overall sales.
1haL's surprlslng Lo be LhaL weak," sald
8rlan WhlLe, an analysL aL CanLor llLzgerald.
l sald Chlna Moblle wlll have a greaL year
wlLh Apple, buL lL won'L be rlghL ouL of Lhe
gaLe. 8uL l was surprlsed lL dldn'L aL leasL
buer some of Lhe soness."
eLer Cppenhelmer, Apple's chlef nanclal
omcer, sald on Lhe Apple conference call
wlLh analysLs LhaL Lhe lower guldance was
ln large parL Lhe resulL of some Lechnlcal
changes ln such Lhlngs as lnvenLory
managemenL and Lhe deferral of more
revenue because lL was oerlng more free
soware. Pe also sald lod sales decllned
32 ln Lhe uecember quarLer and would
conunue Lo fall Lhls comlng quarLer, creaung
head wlnds."
1he underlylng performance of our
buslness ls sLronger Lhan whaL Lhe guldance
mlghL lmply," Cppenhelmer sald.
1he guldance and lhone numbers
overshadowed Lhe klnd of quarLer LhaL
mosL companles would envy. Cverall, Lhe
slew of updaLed gadgeLs -- lncludlng new
lad LableLs, Mac8ook lapLops and Mac ro
deskLop compuLers -- drove Apple Lo record
revenue over Lhe hollday quarLer.
Whlle earnlngs may be aL, mosL
companles would klll for Lhelr
fundamenLals," sald aLrlck Moorhead,
Photo: Sarah Tew
90

prlnclpal analysL aL Moor lnslghLs &

SLraLegy. 1helr producLs are hlgh quallLy,
Lhelr cusLomers love Lhem, and Lhey are
slmng on an obscene amounL of cash."
ln Lhe mosL recenL quarLer, Apple's cash on
hand grew Lo $138.8 bllllon from $146.76
bllllon Lhe prevlous quarLer.
Apple sald quarLerly revenue cllmbed
Lo $37.6 bllllon from $34.3 bllllon a
year earller. 1haL sllghLly beaL analysL
esLlmaLes of $37.46 bllllon, accordlng Lo
1homson 8euLers.
roL was Lhe same as a year earller aL
$13.1 bllllon. 8uL because of lLs lncreaslngly
aggresslve sLock buyback program, Lhe
company's earnlngs rose Lo $14.30 a share
from $13.81 a year earller. Wall SLreeL
93

analysLs had expecLed Apple Lo posL

earnlngs of $14.09 a share, accordlng Lo
1homson 8euLers.
Among Lhe brlghL spoLs were sales of lads
and Mac compuLers.
Apple sold 4.8 mllllon Macs, compared wlLh
4.1 mllllon ln Lhe uecember 2012 quarLer.
1he company sold a record 26 mllllon lads
ln Lhe rsL quarLer, up from 22.6 mllllon a
year earller.
1haL Lopped analysLs' consensus esumaLes
of 24.6 mllllon lads ln Lhe uecember
quarLer. 1haL also reversed Lhree sLralghL
quarLers of decllnes, wlLh Lhe help of
Lhe new lad Alr and Lhe new lad mlnl
wlLh 8euna dlsplay LhaL debuLed mldway
Lhrough Lhe quarLer.
Apple shares rose $4.43, or 0.8, Lo
$330.30 ln regular Lradlng, before Apple
reporLed lLs earnlngs. 1hey plunged ln
aer-hours Lradlng, aL one polnL falllng
below $307.
93

HAPPY (FROM DESPICABLE ME 2)

PHARRELL WILLIAMS
RIPTIDE
VANCE JOY
STRONG
LONDON GRAMMAR
SAY SOMETHING
A GREAT BIG WORLD & CHRISTINA AGUILERA
FREE (FEAT. EMELI SAND)
RUDIMENTAL
ROYALS
LORDE
ALL OF ME
JOHN LEGEND
TRUMPETS
JASON DERULO
RUDE
MAGIC!
SWING (JOEL FLETCHER REMIX)
JOEL FLETCHER & SAVAGE
RATHER BE (FEAT. JESS GLYNNE)
CLEAN BANDIT
READY FOR YOUR LOVE (FEAT. MNEK)
GORGON CITY
HAPPY (FROM DESPICABLE ME 2)
PHARRELL WILLIAMS
CRYING FOR NO REASON
KATY B
TIMBER (FEAT. KE$HA)
PITBULL
HEY BROTHER
AVICII
WILD HEART
THE VAMPS
TRUMPETS
JASON DERULO
MILLION POUND GIRL (BADDER THAN BAD)
FUSE ODG
RIPTIDE
VANCE JOY
I SEE FIRE
ED SHEERAN
MMM YEAH (FEAT. PITBULL)
AUSTIN MAHONE
FIRED (FEAT. J-SON)
B. ROBIN
TIMBER (FEAT. KE$HA)
PITBULL
HAPPY (FROM DESPICABLE ME 2)
PHARRELL WILLIAMS
JUBEL (RADIO EDIT)
KLINGANDE
BLACK SATURDAY
MANDO DIAO
ADDICTED TO YOU
AVICII
HEY BROTHER
AVICII
CANT REMEMBER TO FORGET YOU
(FEAT. RIHANNA)
SHAKIRA
AUSTRALIA
SWEDEN
US
DARK HORSE (FEAT. JUICY J)
KATY PERRY
HAPPY (FROM DESPICABLE ME 2)
PHARRELL WILLIAMS
ALL OF ME
JOHN LEGEND
MMM YEAH (FEAT. PITBULL)
AUSTIN MAHONE
ROYALS
LORDE
POMPEII
BASTILLE
GET LUCKY (FEAT. PHARRELL WILLIAMS
& NILE RODGERS)
DAFT PUNK
INVISIBLE
HUNTER HAYES
TIMBER (FEAT. KE$HA)
PITBULL
BRAVE
SARA BAREILLES
UK

HAPPY (FROM DESPICABLE ME 2)

PHARRELL WILLIAMS
DERNIRE DANSE
INDILA
ROYALS
LORDE
ZOMBIE
MATRE GIMS
COUNTING STARS
ONEREPUBLIC
INSTANT CRUSH (FEAT. JULIAN CASABLANCAS)
DAFT PUNK
GET LUCKY (FEAT. PHARRELL WILLIAMS
& NILE RODGERS)
DAFT PUNK
SOMEWHERE ONLY WE KNOW
LILY ALLEN
PHOTOMATON (FEAT. ELODIE WILDSTARS)
JABBERWOCKY
HEY BROTHER
AVICII
HAPPY (FROM DESPICABLE ME 2)
PHARRELL WILLIAMS
DIEZ MIL MANERAS
DAVID BISBAL
HEY BROTHER
AVICII
TERRIBLEMENTE CRUEL
LEIVA
TIMBER (FEAT. KE$HA)
PITBULL
ANIMALS (RADIO EDIT)
MARTIN GARRIX
STORY OF MY LIFE
ONE DIRECTION
COUNTING STARS
ONEREPUBLIC
LOCO (FEAT. INDIA MARTNEZ)
ENRIQUE IGLESIAS
MMM YEAH (FEAT. PITBULL)
AUSTIN MAHONE
HAPPY (FROM DESPICABLE ME 2)
PHARRELL WILLIAMS
I SEE FIRE
ED SHEERAN
ATEMLOS DURCH DIE NACHT
HELENE FISCHER
KIDS (2 FINGER AN DEN KOPF)
MARTERIA
TIMBER (FEAT. KE$HA)
PITBULL
OF THE NIGHT
BASTILLE
STAY THE NIGHT (FEAT. HAYLEY WILLIAMS)
ZEDD
ROYALS
LORDE
LIEDER
ADEL TAWIL
ICH LASS FR DICH DAS LICHT AN
REVOLVERHELD
CANADA
SPAIN
FRANCE
GERMANY
DARK HORSE (FEAT. JUICY J)
KATY PERRY
SAY SOMETHING
A GREAT BIG WORLD & CHRISTINA AGUILERA
TIMBER (FEAT. KE$HA)
PITBULL
COUNTING STARS
ONEREPUBLIC
LET HER GO
PASSENGER
TEAM
LORDE
BRAVE
SARA BAREILLES
HEY BROTHER
AVICII
GET LUCKY (FEAT. PHARRELL
WILLIAMS & NILE RODGERS)
DAFT PUNK
RUDE
MAGIC!

HAPPY (FROM DESPICABLE ME 2)

PHARRELL WILLIAMS
BLACK PEARL (HES A PIRATE)
[ORIGINAL EXTENDED MIX] [FEAT. SIDNEY HOUSEN]
REBEL
JUBEL
KLINGANDE
WALKING ON AIR (RADIO EDIT) [FEAT. IAN THOMAS,
LANCE BASS, BELLA & BLUE & SNOOP DOGG]
ANISE K
CHANGES
FAUL & WAD AD & PNAU
HEY BROTHER
AVICII
ALL OF ME
JOHN LEGEND
STRONG
LONDON GRAMMAR
FLUTE
NEW WORLD SOUND & THOMAS NEWSON
ORDINARY LOVE
U2
PUMMILLA TALLINNAAN (FEAT. MIKKO)
TUOMAS KAUHANEN
HAPPY (FROM DESPICABLE ME 2)
PHARRELL WILLIAMS
MMM YEAH (FEAT. PITBULL)
AUSTIN MAHONE
TIMBER (FEAT. KE$HA)
PITBULL
JUBEL (RADIO EDIT)
KLINGANDE
HEY BROTHER
AVICII
UNDER CONTROL (FEAT. HURTS)
CALVIN HARRIS & ALESSO
S ET OLE HULLU
JANNA
COUNTING STARS
ONEREPUBLIC
KYLMST LMPIMN
ANNA ABREU
HAPPY (FROM DESPICABLE ME 2)
PHARRELL WILLIAMS
JUBEL
KLINGANDE
LET HER GO
PASSENGER
HEY BROTHER
AVICII
STARDUST (FEAT. CHIARA)
MIKA
ORDINARY LOVE
U2
DEMONS
IMAGINE DRAGONS
TIMBER (FEAT. KE$HA)
PITBULL
BUDAPEST
GEORGE EZRA
JUBEL (RADIO EDIT)
KLINGANDE
HAPPY (FROM DESPICABLE ME 2)
PHARRELL WILLIAMS
ATEMLOS DURCH DIE NACHT
HELENE FISCHER
KIDS (2 FINGER AN DEN KOPF)
MARTERIA
LIEDER
ADEL TAWIL
SOME DIE YOUNG
LALEH
SAY SOMETHING
A GREAT BIG WORLD & CHRISTINA AGUILERA
I SEE FIRE
ED SHEERAN
DEMONS
IMAGINE DRAGONS
STOLEN DANCE
MILKY CHANCE
ROYALS
LORDE
BELGIUM
ITALY
AUSTRIA
FINLAND

FROZEN (ORIGINAL MOTION
PICTURE SOUNDTRACK)
Various Artists
CRASH MY PARTY
Luke Bryan
PRISM (DELUXE)
Katy Perry
NATIVE (DELUXE VERSION)
OneRepublic
NOW THATS WHAT I CALL MUSIC, VOL. 48
Various Artists
MIDNIGHT MEMORIES (DELUXE)
One Direction
JOURNALS
Justin Bieber
NIGHT VISIONS
Imagine Dragons
PURE HEROINE
Lorde
TRUE
Avicii
100
THE FOX (WHAT DOES THE FOX SAY?)
YLVIS
GROWN WOMAN (BONUS VIDEO)
BEYONC
ROAR
KATY PERRY
YONC (VIDEO)
BEYONC
STORY OF MY LIFE
ONE DIRECTION
TIMBER (FEAT. KE$HA)
PITBULL
LET IT GO (FROM FROZEN)
DEMI LOVATO
ALL THAT MATTERS
JUSTIN BIEBER
BEST SONG EVER
ONE DIRECTION
PRETTY HURTS (VIDEO)
BEYONC

WORLDWIDE SMARTPHONE SHIPMENTS

TOP ONE BILLION UNITS FOR THE FIRST
TIME, ACCORDING TO IDC

1he worldwlde smarLphone markeL reached

yeL anoLher mllesLone, havlng shlpped one
bllllon unlLs ln a slngle year for Lhe rsL
ume. Accordlng Lo Lhe lnLernauonal uaLa
Corporauon (luC) Worldwlde CuarLerly
Moblle hone 1racker, vendors shlpped
a LoLal of 1,004.2 mllllon smarLphones
worldwlde, up 38.4 from Lhe 723.3 mllllon
unlLs ln 2012. 1hls allgns wlLh luC's mosL
recenL forecasL of 1,010.4 mllllon unlLs,
maklng for a dlerence of less Lhan 1.
SmarLphones accounLed for 33.1 of all
moblle phone shlpmenLs ln 2013, up from
Lhe 41.7 of all moblle phone shlpmenLs ln
2012. ln Lhe fourLh quarLer of 2013 (4C13),
vendors shlpped a LoLal of 284.4 mllllon
smarLphones worldwlde, up 24.2 from Lhe
229.0 mllllon unlLs shlpped ln 4C12.
ln Lhe worldwlde moblle phone markeL
(lncluslve of smarLphones), vendors shlpped
103

1,821.8 mllllon unlLs, up 4.8 from Lhe

1,738.1 mllllon unlLs shlpped 2012. ln 4C13
alone, vendors shlpped a LoLal of 488.4
mllllon unlLs worldwlde, up 0.9 from Lhe
484.0 mllllon unlLs shlpped ln 4C12. 1hls ls
2.8 lower Lhan Lhe 302.4 mllllon unlLs LhaL
luC had recenLly forecasL.
1he sheer volume and sLrong growLh
auesL Lo Lhe smarLphone's conunued
popularlLy ln 2013," says 8amon Llamas,
8esearch Manager wlLh luC's Moblle
hone Leam. 1oLal smarLphone shlpmenLs
reached 494.4 mllllon unlLs worldwlde ln
2011, and doubllng LhaL volume ln [usL
two years demonstrates strong end-user
demand and vendor sLraLegles Lo hlghllghL
smarLphones."
Among Lhe Lop Lrends drlvlng smarLphone
growLh are large screen devlces and low
cosL," sald 8yan 8elLh, rogram ulrecLor
wlLh luC's Worldwlde CuarLerly Moblle
hone 1racker. Cf Lhe Lwo, l have Lo say
LhaL low cosL ls Lhe key dlerence maker.
Cheap devlces are noL Lhe auracuve segmenL
LhaL normally grabs headllnes, buL luC daLa
shows Lhls ls Lhe poruon of Lhe markeL
LhaL ls drlvlng volume. MarkeLs llke Chlna
and lndla are qulckly movlng Loward a polnL
where sub-$130 smarLphones are Lhe ma[orlLy
of shlpmenLs, brlnglng a solld compuung
experlence Lo Lhe hands of many."
103

SMA81PCnL vLnuC8 PlCPLlCP1S

Samsung ended Lhe quarLer Lhe same way
lL began Lhe year: as Lhe clear leader ln
worldwlde smarLphone shlpmenLs. 8uL
even wlLh susLalned demand for lLs Calaxy
S lll, S4, and noLe models, as well as lLs
deep selecuon of mld-range and enLry-
level models, Lhe company reallzed a
decllne compared Lo Lhe prevlous quarLer.
neverLheless, Lhe company malnLalned
a slzable double-dlglL lead over Lhe nexL
vendor.
Apple posLed record shlpmenL volume
durlng 4C13, drlven prlmarlly by Lhe addluon
of muluple counLrles oerlng Lhe lhone 3S
and 3C, and susLalned demand from lLs lnlual
107
markeLs LhaL saw Lhese models launch aL
Lhe end of 3C13. Sull, Apple had Lhe lowesL
year-on-year lncrease of all Lhe leadlng
vendors. now LhaL Apple has nally arrlved
aL Chlna Moblle, lL remalns Lo be seen
how much Apple wlll close Lhe gap agalnsL
Samsung ln 2014.
Puawel malnLalned lLs number Lhree
posluon worldwlde, aualned Lhe hlghesL
year-on-year lncrease among Lhe leadlng
vendors, and ralsed lLs brand prole wlLh
a hlgher proporuon of self-branded unlLs
compared Lo Lhe CuM work lL had done
for oLher companles. Sull, even wlLh lLs
success, Puawel faces a crowded group
of poLenual compeuLors wlLhln sLrlklng
dlsLance.
Lenovo, desplLe havlng no presence ln
norLh Amerlca nor WesLern Lurope,
nlshed Lhe quarLer ln Lhe number
four posluon. 1he company's sLrengLh
lles ln lLs sLrong presence wlLhln key
emerglng markeLs and a well-segmenLed
producL poruollo spannlng from slmple,
aordable smarLphones Lo full-feaLured
3" screen models. Should Lhe company
become successful aL branchlng lnLo
more developed markeLs ln 2014, lL could
challenge Puawel for Lhe number Lhree spoL.
LC nlshed [usL behlnd Lenovo and edged
ouL Z1L for Lhe number ve posluon, wlLh
[usL ve mllllon unlLs separaung Lhe Lwo
companles. AL Lhe same ume, lLs year-on-
year lmprovemenL puL Lhe company on
par wlLh Puawel and Lenovo wlLh markeL
beaung growLh. LC's success can be dlrecLly
aurlbuLed Lo lLs revlved poruollo from a year
ago, whlch feaLured more large-screen and
hlgh-end models, lncludlng Lhe nexus 3 and
lLs Cpumus C serles.
108

TOP FIVE SMARTPHONE VENDORS, SHIPMENTS,

AND MARKET SHARE, 2013 (Units in Millions)
2013 2012
Shipment 2013 Market Shipment 2012 Market Year over
VENDOR VOLUMES SHARE VOLUMES SHARE YEAR CHANGE
Samsung 313.9 31.3% 219.7 30.3% 42.9%
Apple 153.4 15.3% 135.9 18.7% 12.9%
Huawei 48.8 4.9% 29.1 4.0% 67.5%
LG 47.7 4.8% 26.3 3.6% 81.1%
Lenovo 45.5 4.5% 23.7 3.3% 91.7%
Others 394.9 39.3% 290.5 40.1% 35.9%
Total 1,004.2 100.0% 725.3 100.0% 38.4%
Source: IDC Worldwide Mobile Phone Tracker, January 27, 2014

TOP FIVE SMARTPHONE VENDORS, SHIPMENTS,

AND MARKET SHARE, 2013 Q4 (Units in Millions)
4Q13 4Q12
Shipment 4Q13 Market Shipment 4Q12 Market Year over
VENDOR VOLUMES SHARE VOLUMES SHARE YEAR CHANGE
Samsung 82.0 28.8% 66.7 29.1% 22.9%
Apple 51.0 17.9% 47.8 20.9% 6.7%
Huawei 16.4 5.8% 10.5 4.6% 56.5%
Lenovo 13.9 4.9% 9.4 4.1% 47.3%
LG 13.2 4.6% 8.6 3.8% 53.2%
Others 107.9 37.9% 85.9 37.5% 25.6%
Total 284.4 100.0% 229.0 100.0% 24.2%
Source: IDC Worldwide Mobile Phone Tracker, January 27, 2014
In addition to the table above, an interactive graphic showing worldwide smartphone market share for the top 5 vendors
over the previous fve quarters is available here. The chart is intended for public use in online news articles and social media.
Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.
111
TOP FIVE MOBILE PHONE VENDORS, SHIPMENTS,
AND MARKET SHARE, 2013 (Units in Millions)
2013 2012
Shipment 2013 Market Shipment 2012 Market Year over
VENDOR VOLUMES SHARE VOLUMES SHARE YEAR CHANGE
Samsung 446.7 24.5% 409.4 23.6% 9.1%
Nokia 251.0 13.8% 335.6 19.3% -25.2%
Apple 153.4 8.4% 135.9 7.8% 12.9%
LG 70.0 3.8% 56.6 3.3% 23.6%
Huawei 55.5 3.0% 47.5 2.7% 16.7%
Others 845.2 46.4% 753.1 43.3% 12.2%
Total 1,821.8 100.0% 1,738.1 100.0% 4.8%
Source: IDC Worldwide Mobile Phone Tracker, January 27, 2014

Note: Data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all
vendors.
TOP FIVE MOBILE PHONE VENDORS, SHIPMENTS,
AND MARKET SHARE, 2013 Q3 (Units in Millions)
4Q13 4Q12
Shipment 4Q13 Market Shipment 4Q12 Market Year over
VENDOR VOLUMES SHARE VOLUMES SHARE YEAR CHANGE
Samsung 112.0 22.9% 113.6 23.5% -1.4%
Nokia 63.4 13.0% 86.3 17.8% -26.5%
Apple 51.0 10.4% 47.8 9.9% 6.7%
LG 18.5 3.8% 15.4 3.2% 20.2%
Huawei 17.9 3.7% 15.9 3.3% 12.6%
Others 225.6 46.2% 205.1 42.4% 10.0%
Total 488.4 100.0% 484.0 100.0% 0.9%
Source: IDC Worldwide Mobile Phone Tracker, January 27, 2014
113
Apple reshaped Lechnology and socleLy when
SLeve !obs unvelled Lhe lhone seven years ago.
now, Lhe Lrend-semng company ls loslng ground
Lo rlvals LhaL oer whaL Apple has sLubbornly
refused Lo make: smarLphones wlLh lower prlces
and larger screens Lhan Lhe lhone.
1he vold ln Apple's llneup ls a ma[or reason why
PRESSURE MOUNTS FOR APPLE TO
EXPAND ITS HORIZONS
114
Lhe company's quarLerly revenue may be abouL
Lo fall for Lhe rsL ume ln more Lhan a decade,
much Lo Lhe dlsmay of lnvesLors who are worrled
LhaL Apple lnc. ls loslng lLs verve and vlslon.
Wall SLreeL venLed lLs frusLrauon aer Apple
reporLed laLe Monday LhaL lL sold fewer lhones
Lhan analysLs anuclpaLed durlng Lhe hollday
season. Apple compounded LhaL dlsappolnLmenL
wlLh a forecasL ralslng Lhe posslblllLy of a sllghL
revenue decllne ln Lhe currenL quarLer. lL would
be Lhe rsL ume LhaL Apple's quarLerly revenue
has dropped from Lhe prevlous year slnce 2003.
Apple's sLock shed $44, or 8 percenL, Lo close
1uesday aL $306.30, marklng Lhe company's
113
largesL one-day drop ln a year. 1he sell-o
leaves Lhe sLock abouL 28 percenL below lLs
peak of $703.07, reached ln SepLember 2012
when Apple's leadershlp ln smarLphones and
LableL compuLers was sull generaung robusL
revenue growLh.
Slnce Lhen, Apple has been rellnqulshlng markeL
share Lo Samsung LlecLronlcs lnc. and oLher
companles LhaL prlmarlly make devlces runnlng
Coogle lnc.'s Androld operaung sysLem. 1hose
compeuLors oer a broader selecuon of deslgns
and prlces Lhan Lhe lhone and Lhe lad.
1haL Lrend ls one of Lhe reasons LhaL Apple's
revenue growLh hasn'L exceeded 6 percenL
116
ln any of Lhe pasL Lhree quarLers. 8y conLrasL,
Apple's quarLerly revenue was conslsLenLly
lncreaslng by aL leasL 20 percenL Lwo years ago
and even exceeded 70 percenL durlng Lhe 2011
hollday quarLer.
Apple remalns ln sLellar shape nanclally, comlng
o a $13 bllllon proL ln lLs mosL recenL quarLer -
more Lhan all buL a handful of companles make ln
an enure year. 1he Cuperuno, Callf., company also
ls slmng on nearly $139 bllllon ln cash.
8uL Apple's sLock ls unllkely Lo bounce back Lo
lLs prevlous hlgh unless Lhe company's growLh
acceleraLes.
1he challenges faclng Apple have been mosL
glarlng ln Lhe smarLphone markeL.
117

hones ln less aMuenL parLs of Lhe world are

selllng for less Lhan $200. 8y comparlson, lhones
sold for an average of $637 ln Apple's mosL recenL
quarLer. Lven Apple's cheaper lhone 3C ls [usL
$100 less Lhan Lhe hlgh-end 3S.
Meanwhlle, a varleLy of Androld phones boasL
screens measurlng 3 Lo 6.3 lnches dlagonally,
whlle Lhe laLesL lhones are all 4 lnches.
Apple's lnslsLence on caLerlng Lo Lhe upper end of
Lhe smarLphone markeL wlLh only one cholce of
screen slze ls undercumng Lhe company's growLh,
lnLernauonal uaLa 8esearch analysL 8amon
Llamas sald.
1here ls a gap where Apple ls noL playlng, and
lL's clear LhaL many users wanL some of Lhese
oLher Lhlngs ln a phone," Llamas sald.
As a resulL, Apple's share of Lhe smarLphone
markeL fell from nearly 19 percenL aL Lhe end of
2012 Lo abouL 13 percenL lasL year, accordlng Lo
119
luC. Samsung remalns Lhe markeL leader wlLh
a 31 percenL share aL Lhe end of lasL year, up a
noLch from 30 percenL ln 2012.
Apple Lrled Lo wlden Lhe lhone's appeal
wlLh Lhe cheaper 3C, whlch was essenually
a recycled verslon of Lhe lhone's prevlous
generauon. 1o make Lhe 3C look llke someLhlng
new, Apple dressed lL up ln a brlghLly colored
array of plasuc caslngs.
ln Monday's conference call wlLh analysLs,
Apple CLC 1lm Cook made lL clear LhaL Lhe 3C
dldn'L sell as well as Lhe company anuclpaLed,
Lhough he dldn'L provlde speclcs. Cook halled
Lhe 3S model as Lhe sLar performer ln Lhe
company's hollday quarLer.
WlLh Lhe 3S leadlng Lhe way, Apple sold 31
mllllon lhones ln Lhe scal rsL quarLer. Lven
Lhough LhaL seL a record for Lhe company, lL
represenLed a leLdown because analysLs had
pro[ecLed 33 mllllon.
120
AnalysLs suspecL LhaL many of Lhose lhones are
belng boughL by repeaL cusLomers who love Lhe
moblle operaung soware and oLher servlces,
as well as Lhe cacheL LhaL comes wlLh Lhe Apple
brand. Cook sald Apple sull auracLs a slgnlcanL"
number of rsL-ume lhone buyers.
!obs carefully culuvaLed Apple's luxury lmage
before he dled ln CcLober 2011, and Cook has
121
glven no lndlcauon he wlll rlsk Lalnung lL wlLh
an lnexpenslve smarLphone sporung lower-
quallLy parLs.
Cur ob[ecuve has always been Lo make Lhe besL,
noL Lhe mosL," Cook sald Monday.
Pe also sald Apple wlll expand lLs horlzons
Lhls year wlLh new producLs LhaL wlll push Lhe
company beyond smarLphones and LableLs.
MosL analysLs expecL an lnLerneL-connecLed
smarLwaLch and posslbly a long-rumored
Lelevlslon seL LhaL would run on Lhe same
soware as Lhe lhone and Lhe lad.
Apple also ls preparlng Lo sell an lhone wlLh a
3-lnch dlsplay screen, accordlng Lo unldenued
people clLed ln a reporL Lhls monLh ln 1he Wall
SLreeL !ournal.
122
Apple decllned commenL 1uesday.
lf an lhone wlLh a blgger screen ls ln Lhe
works, lL would pose anoLher LesL for Lhe
company as lL Lrles Lo ensure Lhe devlce reLalns
Lhe same hlgh resoluuon and oLher feaLures ln
earller generauons.
1here ls clearly a sLandard LhaL Apples has seL for
lLself: AnyLhlng less Lhan fanLasuc won'L do, and
no one ls golng Lo glve Lhem a pass lf Lhey don'L
llve up Lo LhaL," Llamas sald
123
PoLel guesLs may soon be able Lo bypass Lhe
check-ln counLer and unlock Lhelr rooms wlLh
dlglLal keys senL Lo an app on Lhelr lhones, one
hoLel chaln says.
1he plloL program ls belng LesLed aL Lwo Alo
bouuque hoLels ln Lhe SLarwood hosplLallLy chaln
- one ln Manhauan's Parlem nelghborhood and
anoLher ln Apple's nauve Cuperuno ln Callfornla,
Applelnslder reporLed Monday.
8oom locks aL Lhe hoLels wlll use 8lueLooLh
proxlmlLy keys, slmllar Lo Lhe 8lueLooLh-
based consumer lockseLs LhaL have appeared
on Lhe markeL.
SLarwood sald Lhe sysLem would be
compauble wlLh Apple's lhones as well as
recenL Androld devlces.
1he chaln belleves smarLphone-enabled
self-servlce Lechnology wlll be an lmporLanL
markeung weapon polnL for hoLels ln Lhe fuLure,
SLarwood head lrlLs van aasschen Lold Lhe Wall
SLreeL !ournal.
We belleve Lhls wlll become Lhe new
sLandard for how people wlll wanL Lo enLer a
hoLel," he sald. lL may be a novelLy aL rsL,
buL we Lhlnk lL wlll become Lable sLakes for
managlng a hoLel."
lollowlng Lhe plloL program, SLarwood sald lL
alms have Lhe sysLem acuve ln more Lhan 100
u.S. locauons by Lhe end of 2014.
HOTEL CHAIN TESTING PROGRAM OF
USING SMARTPHONES AS ROOM KEYS
124